Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2014
|
Income from Operations Before Income Taxes |
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December 31, 2014 |
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|
December 31, 2013 |
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|
December 31, 2012 |
|
The components of income
from operations before income taxes are as follows:
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Domestic
|
|
$ |
(1,151,984 |
) |
|
$ |
12,782,598 |
|
|
$ |
11,175,638 |
|
Foreign
|
|
|
12,290,567 |
|
|
|
10,231,223 |
|
|
|
95,768 |
|
|
|
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|
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Total
|
|
$ |
11,138,583 |
|
|
$ |
23,013,821 |
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|
$ |
11,271,406 |
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Provision for Income Taxes |
The current and deferred
components of the provision for income taxes on operations are as
follows:
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Current
|
|
$ |
2,480,609 |
|
|
$ |
4,123,752 |
|
|
$ |
312,630 |
|
Deferred
|
|
|
487,760 |
|
|
|
2,796,914 |
|
|
|
(3,197,261 |
) |
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|
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Total
|
|
$ |
2,968,369 |
|
|
$ |
6,920,666 |
|
|
$ |
(2,884,631 |
) |
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|
The jurisdictional
components of the provision for income taxes on operations are as
follows:
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|
|
|
|
|
|
|
|
|
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|
Federal
|
|
$ |
214,274 |
|
|
$ |
3,322,032 |
|
|
$ |
(2,915,673 |
) |
State
|
|
|
(67,383 |
) |
|
|
1,305,388 |
|
|
|
115,307 |
|
Foreign
|
|
|
2,821,478 |
|
|
|
2,293,245 |
|
|
|
(84,265 |
) |
|
|
|
|
|
|
|
|
|
|
|
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|
Total
|
|
$ |
2,968,369 |
|
|
$ |
6,920,665 |
|
|
$ |
(2,884,631 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Deferred Tax Assets or Liabilities |
The
Company’s consolidated deferred tax assets (liabilities)
consist of the following:
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December 31, 2014 |
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|
December 31, 2013 |
|
Deferred tax
assets:
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|
|
|
|
|
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Temporary timing
differences
|
|
$ |
3,069,000 |
|
|
$ |
3,018,000 |
|
Net operating loss
carryforwards
|
|
|
12,580,000 |
|
|
|
12,264,000 |
|
Tax business credits
carryforwards
|
|
|
1,782,000 |
|
|
|
1,520,000 |
|
|
|
|
|
|
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|
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Total deferred tax
assets
|
|
|
17,431,000 |
|
|
|
16,802,000 |
|
Valuation
allowance
|
|
|
(17,298,000 |
) |
|
|
(16,571,000 |
) |
|
|
|
|
|
|
|
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|
Net deferred tax
assets
|
|
$ |
133,000 |
|
|
$ |
231,000 |
|
Deferred tax
liabilities:
|
|
|
|
|
|
|
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|
Goodwill
|
|
$ |
(251,000 |
) |
|
$ |
(44,000 |
) |
|
|
|
|
|
|
|
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|
Net deferred tax assets
(liabilities)
|
|
$ |
(118,000 |
) |
|
$ |
187,000 |
|
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Reconciliation of Federal Statutory Rate to Effective Income Tax Rate |
The
reconciliation of the federal statutory rate to the effective
income tax rate for the fiscal years ended December 31, 2014,
2013 and 2012 is as follows:
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Period
Ended, |
|
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|
December 31,
2014 |
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|
December 31,
2013 |
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|
December 31,
2012 |
|
Income before income
taxes
|
|
$ |
11,138,583 |
|
|
|
|
|
|
$ |
23,013,821 |
|
|
|
|
|
|
$ |
11,271,406 |
|
|
|
|
|
|
|
|
|
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Expected tax at statutory
rate
|
|
|
3,787,118 |
|
|
|
34.0 |
% |
|
|
7,824,699 |
|
|
|
34.0 |
% |
|
|
3,944,996 |
|
|
|
35.0 |
% |
Adjustments due
to:
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Difference between U.S.
and foreign tax
|
|
|
(1,470,662 |
) |
|
|
(13.2 |
)% |
|
|
(1,227,747 |
) |
|
|
(5.3 |
)% |
|
|
(8,332 |
) |
|
|
(0.1 |
)% |
State income and
franchise taxes
|
|
|
121,561 |
|
|
|
1.1 |
% |
|
|
1,121,821 |
|
|
|
4.9 |
% |
|
|
357,866 |
|
|
|
3.2 |
% |
Permanent
differences
|
|
|
(171,921 |
) |
|
|
(1.5 |
)% |
|
|
(298,185 |
) |
|
|
(1.3 |
)% |
|
|
242,629 |
|
|
|
2.1 |
% |
Change in valuation
allowance
|
|
|
727,157 |
|
|
|
6.5 |
% |
|
|
(508,629 |
) |
|
|
(2.21 |
)% |
|
|
(7,272,092 |
) |
|
|
(64.5 |
)% |
Other
|
|
|
(24,884 |
) |
|
|
(0.2 |
)% |
|
|
8,707 |
|
|
|
0.1 |
% |
|
|
(149,698 |
) |
|
|
(1.3 |
)% |
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Provision (benefit) for
income taxes
|
|
$ |
2,968,369 |
|
|
|
26.7 |
% |
|
$ |
6,920,666 |
|
|
|
30.1 |
% |
|
$ |
(2,884,631 |
) |
|
|
(25.6 |
)% |
|
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|
Reconciliation of Unrecognized Tax Benefits |
The following
is a tabular reconciliation of the total amounts of unrecognized
tax benefits:
|
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|
|
|
|
|
December 31, 2014 |
|
Unrecognized tax benefits
at January 1, 2014
|
|
$ |
1,917,247 |
|
Gross increases – tax
positions in prior period
|
|
|
125,000 |
|
Gross increases – tax
positions in current period
|
|
|
38,319 |
|
|
|
|
|
|
Unrecognized tax benefits
at December 31, 2014
|
|
$ |
2,080,566 |
|
|
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|